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Rebate u/s 87A on short term capital gains

21 June 2025

I filed my ITR for FY 23-24 on 24th July. At the time, the tax utility allowed a rebate under Section 87A on Short-Term Capital Gains (STCG). However, today I received a demand notice from the Income Tax Department (ITD) for this. Is there any remedy available?

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (8298 Points)
Replied 21 June 2025

Unfortunately, there's no remedy available at this point. The demand has been raised due to a defect in the utility that incorrectly allowed the rebate under Section 87A on Short-Term Capital Gains (STCG) in the new tax regime.

This issue was fixed in a newer version of the utility. Given that you've already filed your ITR under the new regime, you can only file a revised return under the new regime, but the last date to file revised returns was January 15, 2025.

Now, your options might be limited to filing an ITR-U (Updated Return), which also defaults to the new tax regime.